The Securities and Exchange Commission announced today that Judge Martin J. Jenkins of the United States District Court for the Northern District of California has entered a Final Judgment against Douglas M. Gloff, of San Diego, California, in a Commission action that charged him with insider trading in the securities of Acuson Corporation. Without admitting or denying the allegations in the Commission's complaint, Gloff consented to the judgment which permanently enjoins him from violating Section 14(e) of the Securities Exchange Act of 1934 and Rule 14e-3 thereunder, and orders him to pay $137,485.91 in disgorgement, prejudgment interest of $17,355.08, and a civil penalty of $137,485.91.

The Commission's complaint in this matter, filed on December 19, 2001, alleged that Gloff engaged in unlawful insider trading prior to the public announcement on September 27, 2000 that Siemens Medical Engineering Group was making a tender offer for Acuson. The Commission alleged that, prior to the public announcement, Gloff learned from an Acuson director that Acuson was going to be acquired. According to the complaint, Gloff, while in possession of this material, non-public information, purchased 200 Acuson call options on September 21, 2000 and then sold all 200 calls immediately following the public announcement, realizing illegal profits of $137,485.91. The complaint further alleged that on October 3, 2000, after being contacted by the Commission staff, Gloff met with the Acuson director and suggested that the director deny that he knew Gloff if he was asked that question. (Litigation Release No. 17282, December 19, 2001.)

Simultaneously with the filing of the Commission's complaint, the U.S. Attorney's Office for the Northern District of California filed related criminal charges against Gloff. Gloff has entered a guilty plea in connection with those charges, and is scheduled to be sentenced on November 21, 2002.

The Commission would like to thank the New York Stock Exchange, the Pacific Stock Exchange, the U.S. Attorney's Office for the Northern District of California and the Federal Bureau of Investigation for their cooperation in this investigation.